Supporters of a repeal of Public Act 4 wait outside The Michigan Court of Appeals on Thursday May 17, 2012. (AP Photo/Detroit Free Press, Romain Blanquart)

Michigan's so-called emergency manager law could be weakened even if it survives a voter referendum in November.

Proposal 1 asks voters to decide the fate of Public Act 4, which gives broad powers to state-appointed emergency managers tasked with resolving fiscal crises in municipalities and school districts.

Those powers include the ability to reject, modify or terminate collective bargaining agreements. But Proposal 2, which seeks to enshrine collective bargaining rights in the state constitution, could strip emergency managers of that ability.

If approved by voters, the "Protect Our Jobs" measure would prohibit the state from impairing, restricting or limiting the negotiation of any collective bargaining agreement and would undo any existing restrictions on that right.

"If Proposal 2 passes, an emergency manager presumably would not be able to abrogate collective bargaining agreements," said Bettie Buss, a senior research associate with the Citzens Research Council of Michigan. "It would have constitutional protection, so the statutory provision is trumped by the constitution."

Organized labor has provided financial backing to the ballot committees seeking to repeal Public Act 4 and enshrine collective bargaining. The majority of union spending has gone toward Proposal 2, which supporters champion as a preemtive strike against right-to-work initiatives.

Michigan Attorney General Bill Schuette, who joined an unsuccessful fight to keep Proposal 2 off the ballot, has argued that the measure would impact more than 100 state statutes.

"It's not clear what effect or what its exact reach would be," Fred Headon, who directs the Bureau of Local Government Services for the Michigan Treasury, said last week during a panel discussion hosted by the Federal Bar Association. "It certainly could have an impact on efficacy of Public Act 4 even if it survives."

Critics say Public Act 4 is unconstitutional, arguing that the contract clause of the U.S. Constitution forbids states from impairing the obligation of contracts. The matter will likely be argued in court if the law survives.

Supporters, including Michigan Gov. Rick Snyder and Treasurer Andy Dillon, say the law provides emergency managers with effective tools they did not have under a previous iteration of the law.

"Some municipalities and schools districts have failed to reduce expenditures in the face of shrinking operating revenues," Treasury spokesman Terry Stanton said last month.

"With an estimated 70-80 percent of local unit expenditures related to salaries, benefits, and retirement benefits, it is increasingly difficult for a manager to address a financial emergency without having the ability to address these issues."

Public Act 4 was temporarily suspended in August when Proposal 1 was approved for the ballot. A "yes" vote would keep the law in place. A "no" vote would result in repeal and, according to the state, permanent reimplemenation of Public Act 72.

Emergency managers currently oversee the cities of Benton Harbor, Flint, Pontiac, and Ecorse along with public school districts in Detroit, Muskegon Heights and Highland Park. An appointment has been recommended in Allen Park. Three cities -- Detroit, Inkster and River Rouge -- are operating under consent agreements that extend some emergency powers to local officials.